Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — Investor Presentation (February 2017)
21 slides from Aviat Networks's investor presentation, February 2017
Slide 1: Aviat (AVNW) February 2017
a AVNW (NASDAQ) Aviat February 2017
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The information contained in this presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act and Section 27A of the Securities Act, including expectations regarding
Slide 3: About Us
ABOUT US Aviat is the trusted expert in microwave networking Best in class TCO and proven mission-critical microwave networking solutions HIGH PERFORMANCE SIMPLER OPERATIONS CUSTOMER SERVICE PRODUCTS Global Microwave Portfolio Cloud-Enabled Services Planning Automation Highest Performance Profession
Slide 4: Why We Win
WHY WE WIN • Strong Brand: Recognized as a Microwave Networking Specialist • Trusted Provider of Mission-Critical Networks • Comprehensive Solutions & Services Portfolio • Local Presence and Focused Expertise • Outstanding Customer Service and Support • Innovative Technology & TCO Focused Solutions
Slide 5: Marquee Service Provider Customer Base
MARQUEE SERVICE PROVIDER CUSTOMER BASE Leading Provider in Key Markets Served Tier 1 Operator MTN Strong global brand with a targeted sales approach (focus on profitability and cash generation) SLIDE 5 AVIAT NETWORKS
Slide 6: Strong & Diverse Private Network Business
STRONG & DIVERSE PRIVATE NETWORK BUSINESS Segment Leader The Clear Choice Public Safety Global Partners in Presence in all 50 States Security & Defense National Security Networks With 25 U.S. Statewide France, Middle East, North Networks #1 Supplier Africa, Asia Pacific Energy Oil & Gas A Leading Su
Slide 7: Sample of Aviat's Private Networks Customer Base
SAMPLE OF AVIAT’S PRIVATE NETWORKS CUSTOMER BASE SLIDE 7 AVIAT NETWORKS
Slide 8: Compelling Market Demand Drivers
COMPELLING MARKET DEMAND DRIVERS LTE Enabled Significant First Responder Significant Network Operational & Law Enforcement Challenges Applications Investments Wireless Needed = Opportunity Broadband Networks Planning Exponential & Design Network Tens of Traffic Operations Billions Demand Fiber Autom
Slide 9: Network Technology Evolution
NETWORK TECHNOLOGY EVOLUTION 2000’s 2010’s 2020’s ENTERPRISE BACKHAUL RAN, FIXED FIXED, ENTERPRISE TDM ETHERNET IP/MPLS SDN MICROWAVE TDM Mwave (NxE1, STM1) HYBRID Mwave (TDM + CE) ALL-PACKET Mwave (CE-only) IP-SDN Mwave SLIDE 9 AVIAT NETWORKS
Slide 10: Competitive Advantage Driven by Our Highly Differentiated Portfolio
COMPETITIVE ADVANTAGE DRIVEN BY OUR HIGHLY DIFFERENTATED PORTFOLIO INDUSTRY’S LOWEST INDUSTRY’S FIRST LATENCY MWAVE INDUSTRY’S INTEGRATED MOST MICROWAVE ROUTER RELIABLE INDUSTRY’S INDOOR LEADING HIGHEST POWER TRUNKING AUTOMATION MWAVE RADIO EVER PLATFORM FOR BUILT MICROWAVE NETWORK INDUSTRY’S SERVIC
Slide 11: Aviat's Momentum Continues with Key Customer Wins
AVIAT’S MOMENTUM CONTINUES WITH KEY CUSTOMER WINS Aviat Selected By US Federal Agencies for Aviat Partners with Airtel Nigeria for Enterprise Digicel Selects Aviat Networks' Transmission Microwave Solutions Access Solution • Awarded two Indefinite Delivery / Indefinite Quantity (ID/IQ) contracts • S
Slide 12: Fiscal 2017 Second Quarter Financial Update
Fiscal 2017 Second Quarter Financial Update Please see our earnings press release dated February 8, 2017 for our GAAP to Non -GAAP reconciliation
Slide 13: FY17 Second Quarter Financial Highlights
FY17 SECOND QUARTER FINANCIAL HIGHLIGHTS (SEQUENTIAL COMPARISONS – Q2 FY17 VS. Q1 FY17 – NON-GAAP) • Revenue of $68.5 million – Book to Bill ratio < 1 • Revenue increased 17.7%, driven by strength in North America and Income Statement Summary (Non-GAAP) Private Network business, coupled with increas
Slide 14: FY17 Six Month Comparisons -- Financial Highlights
FY17 SIX MONTH COMPARISONS -- FINANCIAL HIGHLIGHTS (1H FY17 VS. 1H & 2H FY16 – NON-GAAP) ($’s in millions) Income Statement Summary (Non-GAAP) 1H FY17 2H FY16 1H FY17 1H FY16 Variance Variance Actual Actual Actual Actual Revenue $126.7 $118.7 $8.0 $126.7 $150.0 ($23.3) Gross Margin $38.9 $29.5 $9.4
Slide 15: Trending Quarter Financials
TRENDING 6 QUARTER FINANCIALS Sales and Growth Gross Profit ($ in millions) ($ in millions) $100.0 20% $25.0 $21.5 50% $79.6 18% $21.0 15% $80.0 $70.4 $68.5 $20.0 $17.4 40% 10% $16.5 $60.5 $58.3 $58.2 $14.5 $15.0 $60.0 5% $15.0 29.9% 31.3% 30% 0% 0% 26.4% 25.7% 23.4% 23.9% $40.0 -4% -5% $10.0 20% -1
Slide 16: FY17 Q2 Balance Sheet Key Indicators
FY17 Q2 BALANCE SHEET KEY INDICATORS (FAVORABLE TRENDS WHEN COMPARING PRIOR TWO QUARTERS) ($’s in millions) Q2 FY17 Q1 FY17 Q4 FY16 • Sequential cash increase driven by higher profitability and Cash and better controls and processes in cash collection cycle; also Equivalents $35.0 $31.8M $30.5M favo
Slide 17: Trending Quarters - Balance Sheet Key Indicators
TRENDING 6 QUARTERS - BALANCE SHEET KEY INDICATORS Cashflow from Operations Days Sales Outstanding (DSO) ($ in millions) (in Days) $6.00 $4.60 $5.00 120 $3.80 99 99 99 $4.00 100 91 $1.80 78 $2.00 $0.70 75 80 $0.00 60 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 -$2.00 40 -$4.00 20 -$6.00 0 -$8.00 -$7.1
Slide 18: Historical Cash and Cash Equivalents Trend
HISTORICAL CASH AND CASH EQUIVALENTS TREND $45 $40 $35 FY17 cash position anticipated to increase, with momentum building $30 in 2H17. $25 $20 $15 $10 $5 $0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 ($’s in millions) Cash and Cash Equivalents Debt Q4 F’16 and Q1 F’17 cash position impacted b
Slide 19: Looking Ahead – Financial Outlook
LOOKING AHEAD – FINANCIAL OUTLOOK ($’s in millions) Income Statement Summary (Non-GAAP) FY16 2nd Half FY17 1st Half FY17 2nd Half Comments Actual Actual Estimates Q3 revenue expected to be between $60.0 and $66.0 million; Revenue $118.7 $126.7 $130.0 - $140.0 Q4 revenue expected to be in excess of $
Slide 20: Key Takeaways
KEY TAKEAWAYS • Top-line has stabilized and is expected to grow in the 2nd half of Fiscal 2017 (relative to 1st half and last year’s 2nd half) • 1H FY17 results show impact of process enhancements; operating on a lower cost basis and more efficiently • Investments in R&D continue for both market seg
Slide 21: Aviat Networks
Aviat NETWORKS WWW.AVIATNETWORKS.COM
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